Rising Food Prices
80Rising food prices concern everyone. Food production costs and the rising trend in unconventional uses of food staples have caused prices to soar. This article seeks to identify the many factors that have led to this dilema.
The UNFAO (United Nation Food and Agriculture Organization) have held summits and dialogues. At such meetings, a wide range of issues on food supply, shortages and, pricing are discussed. As the recognized global "watchdog", it monitors all matters pertaining to food.
Through such talks, document have been produced to urge its 181 members to "reduce trade barriers and market-distorting policies". Although the exact definition of "market-distorting policies" remains obscure, members have duly pledged to "reduce trade barriers and boost agricultural production".
The Head of the UNFAO, Jacques Diouf, has declared that billions of dollars had been promised by countries, regional banks and the World Bank. He did not elaborate on how much of this money would be given to the small-holder farmers of poor countries from where most of the world's food is produced. He also did not disclose how the rest of this money would be mobilized to counter the unabated rise in food prices.
While the plight of poor countries has always been discussed in great detail, the rest of us need to know what steps are being taken to also help us. Inflated food prices do not only affect the poor. Lower middle income wage earners in rich countries have now become the new "working poor class" who often have to choose between feeding themselves and keeping warm.
Eating less is only a temporary solution to the present food crises and cannot be sustained.
The world needs to know what can be done and what is being done to bring down food prices. We need to know the underlying reasons that caused food prices to escalate. And we especially need to know why these reasons were not addressed at the recent summits and discussions.
The constantly rising price of crude oil has gained much media attention. You hear about it on the news everyday. Everyone seems to be focussing their unhappiness in that direction. But the exorbitant price of crude oil is not the only factor that has pushed up food prices. There are other factors.
Food is a tradable commodity. There are people who invest in food commodities. And while food prices rise on speculation of projected consumption and the expected demand to meet such consumption, speculators are laughing their way to the bank.
And what about the age-old practice of ensuring that food supply does not exceed demand? Are there enough safeguards and resources to ensure that food supply is not unscrupulously manipulated? Can there be a way to monitor this? Is it being monitored in the first place?
And there's also the matter of bio-fuels. More foods are expected to be used in producing this latest alternative to crude-based gasoline and diesel. But when food crops are used to produce fuel, the value and price of those crops go up. These crops then become more sought after commodities on the stock exchange.
Why aren't these issues raised and discussed at the UNFAO discussions? How can problems be resolved if they are not brought up or swept under the carpet? Someone please enlighten me before more people suffer and die from malnutrition and starvation.
Poverty
Poverty (also called "penury") is deprivation of those things that determine the quality of life including food, clothing, shelter and safe drinking water; and also "intangibles" such as the opportunity to learn... (wikipedia)
Malnutrition
Malnutrition is the lack of sufficient nutrients to maintain healthy bodily functions and is typically associated with extreme poverty in economically developing countries. (wikipedia)
Starvation
Starvation is a severe reduction in vitamin, nutrient and energy intake, and is the most extreme form of malnutrition. In humans, prolonged starvation (in excess of 1 - 2 months) causes permanent organ damage and, eventually death. (wikipedia)
Rising Food Prices Doom the Poor
Rising food prices mean that even more people will die of diseases caused by malnutrition and hunger in poor countries. Even with the current international food aid programes, the death toll is predicted to reach one billion if nothing is done to bring down the price of food.
Food Prices - Unaffordable to the Poor
Rising Prices of Food Affects Everyone
Rising Food Prices also affect rich nations. There is a sharp increase in the number of working adults who can no longer support their families. These people are classified as "The Working Poor". With food being as expensive as it is today, such families often have to choose between the need to eat and the need to keep their homes warm.
Rising Food Prices - The Working Poor
Rising Food Prices - The Bio Fuel Factor
Rising food prices were reported to have been caused by a number of factors. One of these factors is Bio Fuel production. It takes about 232 kilograms of corn and 13,500 liters of water to produce 50 liters of bio ethanol. Calculations like these make it difficult to justify the production of Bio Fuels.
How Bio-Fuels Impact The Economy
What You Should Know About Rising Food Prices
Reasons for Food Price Increases
1. Inflated crude oil prices.
2. High amount of food crops to produce disproportionally small quantities of bio-ethanol.
3. High cost of food production and transportation due to soaring price of petrol and diesel.
4. Trade protectionism - ban on food crop exports.
5. Trade barriers - limits on the amount of food crops that can be exported.
6. Global warming - unprecedented change in weather patterns causing floods and drought.
7. Food crops allowed as tradable price-fluctuating commodities on the stock exchange.
8. Stock market profiteering and speculation on projected demand for food crops for both consumption and fuel production.
9. Increased shift of investments from other commodities to food crop commodities.
10. Change in eating habits in both developed and developing economies.
11. Increased amount of food crops used to feed livestock for slaughter and sale to cater to higher meat consumption.
12. Stock-piling of food crops in anticipation of higher future food crop prices.
13. Deliberate destruction of food crops to create lower supply to higher demand ratio to push up food prices.
14. Small holder farmers switching to more lucrative crops causing a shortfall in the supply of certain food staples.
15. Insufficient international and domestic safeguards to prevent manipulation of food crop production and supply.
16. Inadequate monitoring of food crop production resulting in poorer food crop yields and wastage of resources and subsidies.
17. Destruction of arable land to make way for factories and other industrial support facilities.
18. Inefficient agricultural practices that result in lower quality of food crops.
19. Use of unapproved fertilizers and pesticides that result in food crop spoilage and contaminated food crops that are unsafe for consumption.
20. Growing trend - many countries prefer to import food rather than grow their own food. This practice ensures that food supply will remain stagnent even as global populations continue to grow.
Peak Oil
And here's another video on a subject that many people outside of America have not heard of: Peak Oil. It was produced in the earlier part of 2006 but the relevance of it's contents still apply today.
Though this video primarily deals with issues pertaining to crude oil, it also highlights some keys points that are directly related to food price increases.
An Explanation on the Theory of Peak Oil
See also Rising Transport Costs - Alternatives and Consequences
Here are some other useful links that explain the factors involved in rising food prices in much greater detail:
Related Links
- Bad Juice: World Bank Blames Biofuels for High Food Prices
Rising food prices have been found to contribute to about 75% of price increases instead of the initial 2% to 3% as previously reported. This is according to developments concerning a World Bank report that was recently "discovered". - US food groups plan hefty price rises
Soaring commodity costs of food on the stock-market have forced US food companies to schedule another round of "hefty" food price increases in the vast majority of protein food products by as much as 20% before the end of 2008. - The real rate of inflation
Britain's former Prime Minister, John Majors, has voiced out that the official figures on inflation in the UK were "extremely misleading". He states that the true rate of inflation should be between 8% and 10% instead of the 2% reported in parliment - Medill Reports - Developing Countries Hit by Skyrocketting Fuel and Food Prices
The IMF says that poor nations dependent on food imports are the worst hit by skyrocketing food price increases. Such countries would no longer be able to feed their people or maintain economic stability if this trend is allowed to continue unabated. - How Do I Calculate the Inflation Rate
This is an excellent website the introduces the formula for calculating Inflation. It also explains the mathematics of this calculation by using easy-to-follow examples in a simple and clear method of instruction.
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Comments
These videos are very informative but shocking, too. It makes me feel guilty to have the privilege to buy food when people around the world are dying of hunger and malnutrition.
Those videos are powerful, man. Heavy. Thanks for spreading the word. I didn't know so many people were dying of hunger.
I was moved to tears watching the first video. It makes me so sad and angry that people are making so much money on the stock exchange at the expense of the poor. Thank you for sharing this article with all of us. I hope that this will raise awareness on the plight of the poor who are starving and dying.
A good helpful hub, gee those videos really make you wonder. Our powers to be dont really care do they.
Terenceyap,
Such passion in your writing... such purpose. Another incredible Hub dealing with the horrible issue of rising food prices...we are in for more I am afraid. I am that "pig" American who is so spoiled... it is incredible. I do understand this very concept of food being used for fuel, and am frightened by it. I have been watching the wheat crisis very carefully even here in the United States...and believe me, we will be the last to feel the hunger in the proportions that you speak of, but it will come if there is not a change in store. Your choice of videos is again amazing...Thank you for speaking out, with one small voice, but with a powerful message to be heard. Yes, I too believe that one voice can make a difference! Thank you for your inspiring words.
A serious issue and one that people often don't think about until our backs are up against the wall with the economy in a bad place and fuel prices sky high. I hope a lot of people realize that we (in America and "First World" countries) who complain about about high food prices have little to say when so many people are flat-out starving so we can put alternative fuels in our vehicles and go to Starbucks...
Wordpulse:
Solar energy seem would be a good alternative once the find the correct type of battery that doesn't harm the environment. Hydrogen fuel is only cost effective for countries with excess to sufficient water.
Adam:
Yes, these videos are shocking. They still affect me to this day. Feeling guilty only shows us that our conscience hasn't died. Contributing to the hungry in less fortunate countries would be the blessing those people ae praying for.
Heavy Metal:
Yeah... they carry a heavy message for all of us to do what's right. I also didn't know till I saw those videos. It would be great if we could help those guys out.
Geraldine:
The first video is really really hit me emotionally, too. And yes, I'm angered by all the profiteering going on. Rich people are getting richer while people starve and die every day. I hope that you will help spread this message so that something can be done to stop this atrocity.
Eileen:
Yes, these videos are meant to do that. I don't know much about government but I do know that we can do our part by telling others about what's been going on.
ITD:
I am unworthy of your kind words. I do hope that you will help to spread awareness on the plight of these poor people who are powerless to help themselves.
New Day:
It is indeed a serious issue. I think it is more important to focus our attention on helping those people. Perhaps in future, people will do their calculations before they implement new ideas. But as for now, please help to tell others about what you've read here.
To everyone:
Thank you for taking the time to read this article. I am so grateful that you share the same views and I once again urge to you to help to inform others on the plight of the poor. Thank you and God bless all of you.
Another hub very well done, Terrence. All of us need to be concerned about these things that are happening, not just in our immediate communities but also around the world. Thank you for sharing.
Thank you Rose,
I only hope that more people will read this article and lend their voices to raise awareness on this issue.
Great content Terence, thank you. This makes us realize how blessed we are and at the same time a bit guilty upon realization about our less fortunate brothers and sisters out there.
Solving global problems like this must be done with holistic, strategic and long term thinking. We cannot resolve them in isolation from other problems like global warming and ageing population.
Wordhelp,
Thank you for your empathy and suggestion. Perhaps if many more people were to write articles on the subjects that you have mentioned, world governments and organizations would be compelled to adopt the holistic, strategic and far-sighted solutions that you advocate.
I'm not any good at writing articles. Is there any other way to spread this message on the internet?
I, too, am not good at writing articles.
I know of an organization that collects signatures for petitions. It's called avaaz.org. Perhaps you might like to pay them a visit and find out a bit more about who they are and what they do.
People think it is so easy to feed the world, yet they spit in the face of our soldiers that fight those who opress. The American desire to "have their cake and eat it too" is a result of a liberal uneducated education system. We have failed to learn the lessons of our past and will continue to suffer the repercussions. For example, does anyone know anything about the Barbary Coast? Countries have the money, the wealth and the power to feed their people but they choose not to because of greed and self serving ideals. Just like when we choose to spend money on alcohol, cigarettes, toys, games, movies, expensive cars, vacations, these are all diversions from the reality that people are dying every day. So before you codemn, learn the facts. You may find that anyone in any country that has more than enough can be compared to the selfish dictators who choose to serve self rather than others.
mwoods,
Thank you for taking the time to express your personal views.
There is substance in what has been said and yet, the chosen style of delivery leaves much to be desired.
Condemnation is a strong word that should be used carefully.
Comprehension of the written word is often ensnared with subjectivity. Thus, our comprehension of the facts is dependant on the way in which we choose to interpret such facts.
The comparison between affluent people and "selfish dictators" baffles me. What could possible be achieved by making such a harsh statement in reference to the very people whom help is needed from?
As I see it, everyone "that has more than enough" has a personal, moral responsibility to help the less fortunate. But such persons cannot be compared with "dictators".
"Dictators" impose their ill-will on the helpless; persons residing in other countries should extend their goodwill to the helpless. There doesn't seem to be enough to warrant such a comparison.
However, I do appreciate the time and effort you have put into this comment. Please do not hesitate to leave me another comment, mwoods. Perhaps we could further discuss this matter in greater detail.
Some very powerful images and statements on this very comprehensive hub.
There's so much more research needed in it. The hardest part is in procuring objective content without the hysteria.
I was very impressed with your hub on Global Warming. Keep up the good work.
*smiles*
Thank you for a very informative article.
Great hub.
Thanks guys.
A lot of this rise is due to the growing biofuels and the environmental changes kicking in. we are in for a rough ride.
Rising food prices are indeed a problem. I wrote an article myself about this topic. It is about The rising Tortilla prices in Mexico also because of Oil prices: perhaps a nice article for the people interested in this matter. I like this article as well! Everyone should put more emphasis on this problem! Good job!
To Rudra,
Thanks for your comment.
I had the good fortune of speaking to an African academic yesterday. He told me that another problem that I did not raise in this article had to do with the "Destruction of Arable Land"; that some governments are destroying farmland and using that land to build factories and other non-food producing activities.
While it is financially beneficial to optimize the profitability of a given plot of land, the main concern here would be an ever-dwindling supply of food should this practice continue.
Misterpm:
Thanks for your comment. Yes, I do hope more people write articles about these problems and raise awareness but, I am now trying to figure out how to reach the people who don't normally want to read about these topics. Re-informing the already-informed defeats the purpose of this article.
I hope that people could also leave me constructive criticism on how to improve the distribution and scope of this article.
I think because of prices continuing to rise you will find more people who will want to read about these topics more often, such as myself. Your long list of reasons for food price increases is an eye opener for me. Thanks for this very informative and well researched hub.
Dear Dottie,
The long list of reasons for food price increases is what I add to this hub after having had the privilege of learning from more knowledgeable persons than myself. I hope that you could help others to realize how this problem is going to impact all of us if it is neglected. Thank you for taking the time to read this article, m'lady.
terenceyap07, I will do my best to get the word out. Good luck to you too!
Dear Dottie,
I am in your debt, m'lady. May you always be blessed.
terenceyap07 I like your wisdom, you are so mannerly and give great information and advice. Write more! =)
Dear Marisuewrites,
I am at a loss as to how to respond to your kind comment. But thank you for taking the time to read this article, m'lady.
This is such a complex article and subject. One that the average person does not take the time to research. The average person turns on the TV (if they have one) and believe what is told ...even when they know the media is controlled.
I don't know where we begin ...the control was started a long time ago and the general public is just now becoming aware and saying "what is happening?" And they (who ever they are) are ready with the answers ...even if what they say are lies.
You have touched on a deep subject and really needs to have a lot of input ..I am sure you will continue. But is it too late? It remains to be seen!
I like to believe that good will prevail ..I like you writing ...I will be back to take a deeper look at this ...my best to you and your health!!
Dear Gjcody,
What you say is so true. This article used to appear on page 4 of Google. Now, it has been kicked back to page 13 for no apparent reason.
And even though "Rising Food Prices" is a very competitive key-phrase because it's where all the news agencies are at, there is no logical reason why this article had been pushed so far back.
I'm sad that the "control" you speak of also exists on Google searches. So to counter this situation, I have asked everyone I know to put links to this article on their websites and blogs so that this message can still be assessible.
Yes, it is a very "deep" subject that shall require much more input. I have already amended it twice since its initial publishing. Generous and well informed individuals have been kind enough to point me in the right direction to do the necessary research. This article would not have been possible without their kind assistance and direction.
Thank you for your kind words of encouragement, m'lady. I shall endeavour to build up this hub with more information.
Greetings,
I am really new to Hub pages but I will have a lot to contribute. I would really like to contribute something to this Hub. Between my studies in chemistry and after reading the book "Blue Covenant" There is another key factor you touch on with biofuel but not to the extent that it efects world hunger.
Fresh water is running dry! Water is a commodity becoming more and more privatized. It takes 270 liters of water to make the 1 liter of ethanol from corn. That fact will stick in my mind. Brazil is the largest exporter of ethanol and whole rivers and lakes are bone dry.
Tosolve this water scarcity issue it is suggested that countires that have drinkable municipal or tap water actually drink it and stop supporting privatized water like Sparkletts or Evian or Fiji. Municipal water in Southern CA costs 1 penny a gallon while if you buy water in liters at the grocery store you are paying more than $3 a gallon. Wow what a mark up!
I suppose I will have to start my first Hub on this subject! Peace!
Dear MD Free,
Thank you for your point about the enormous amount of water needed to produce ethanol. I will research this point in greater detail and add it into this hub. Thank you again for this lead. This is also another important point for all of us to consider.
I urge you to write what you can to spread your message on the water issue. But your ranking on Google will not be good even with the best SEO\SEM techniques. I have noticed that certain news articles have disappeared from Google in a matter of hours.
Regardless, if more and more people were to write articles or link their sites to such articles, then even google would be overwhelmed, my friend. Thank you for your input and participation in this serious problem that looms over us.
"He that increaseth knowledge, increaseth pain."
Dear Hill Country,
The more I learn, the more I realize how much more there is to learn.
Recent reports in the Wall Street Journal are about the World Bank report that says that Bio Fuels are responsible for about 75% of food price increases. And I agree that food should not be speculated on. But governments should have seen this coming. I believe they did! Why can we use water and solar energy. It seems that every genius who ever announced that they discovered how to make things run on water has since mysteriously disappeared. I like your work. I will spread the word around and bring attention to this article in every way I can. Very informative and important message here for all to hear. Thank you.
Dear Reynard,
Yes, I read those reports when they first leaked out of the World Bank. It's sad that these statistics could not have been considered earlier on before this whole mess about food prices started.
And yes, it does seem odd that the consequences of bio fuels were not thought through. But I am not qualified to pass judgement on the way that things are done at higher levels and so I shall refrain from doing so.
All I can do is focus on is spreading an awareness of these problems that are related to the unprecedented rise in food prices. People are dying out there and even the rich nations of the world are feeling the pinch.
Finding solutions to problems are far more constructive than pointing a finger of blame. Water, hydrogen and solar energy seem to be better alternatives to bio fuels. But I need to know more about these alternatives before being an advocate for them.
I have also read about those geniuses that you have referred to. Truth be told, a sudden switch from one source of energy to another would destabilize all economies of our world.
I appreciate your desire to help spread the word. Millions will thank you for it. I am thankful and humbled by your sincerity in helping to make our world a better one. May you always be blessed , my friend.
Once again my master humbles me.
All of your explinations point to greed.
It is time for a revolution. Civility has failed, corrupted by greed.
Dear Funnebone,
Yes, greed is very rampant these days. And while I agree that something must be done to address this area that you've highlighted, I believe that a revolution should be a civil one if it's to be effective.
Each of us make a difference in our own individual capacitites. Every time another one of us turns away from greed and chooses to help the needy, the better this world becomes.
It is the sands that make the mountain.
Thank you for your valuable insight into this mater, my friend. May others choose to be as wise as you.
These facts are frightening. How could all these problems be allowed to happen? Can't governments find a better way to experiment? And it takes so much water and food to make bio fuels! This is crazy.
Dear Very Concerned,
These facts are indeed frightening. A continued escalation in food prices would destabilize economies across the globe and change the fragile framework of trade. We have already seen 2 previous World Wars that were sparked off because of trade disputes and imbalances that threatened their economies. Let us all hope that we are not, once again, headed in that direction.
Projections on future oil prices, the heavy dependance on oil and, the fear of literally running out of oil had prompted the need to procure alternative sources of energy. From what I have researched thus far, all forms of alternative energy have their share of problems. As an example, solar energy is dependant on storage cells that, in themselves, pose serious problems of polution when such cells need to be discarded. And untill better storage cells can be developed, solar energy remains but a blissful daydream.
It's always easy to pass judgement on the authorities that govern over us. But I have learnt the error of my ways. My limited knowledge of the many facets involved in decision-making does not qualify me to judge. What I now do is pose questions and offer suggestions in the hope that these would help others in positions of authority to see things from a wider perspective.
The enormous amount of water and food required to produce such a small quantity of bio fuel is outrageous. More so when people in poor countries are denied access to food and water because of such initiatives. Much unnecessary suffering and death are occurring at this very moment. The severity of this problem could further compound the problem of radicalism born of hunger and deprivation.
Rich nations that know not hunger, from where policies that dictate world trade and commerce stem, would be hard pressed to counter terrorist idealogies that thrive in impoverished countries faced with hardship, hunger and, death.
It is my sincere hope that we, as a global community, will fully utilize the internet as a resource in helping to spread awareness of the problems associated with rising food prices and avoid the mistakes of our predecessors before it is too late.
Excellent hub. I see no quick fix to the food crisis. We (the haves) have led by example and sadly our lesson has been that it is good to over-consume. And as we continue to overconsume grossly, we are in no position to advise emerging middle classes in China and India to remain frugal. Especially as we show no signs of easing up or modifying our intemperate lifestyle.
The GCC States are the perfect example of unsustainable 'development', but they are sitting on the oil reserve and their time of ascendancy has come. The little mosques are dwarfed by the hi-rise mammon palaces. The still small voice of calm is lost.
Dear Paraglider,
Yes, the are no quick fixes for a problem of this magnitude and complexity, my friend. On the one hand, the ways that countries sustain their economies should be revamped. But on the other hand, restructuring the matrix of such economies presents a daunting challenge to any government in these times of uncertainty.
And yes, I agree that the roaring waves of mammon so easily drown out the tiny voice of conscience. Regardless, that small voice calls out consistantly and untiringly.
The brook may be blocked by the rock but in time, it is the brook that prevails over the rock.
Thank you for being here and sharing your thoughts and insights, my friend.
There is no reason with all the food that is wasted for people in any part of the world to go hungry. With the amount of technology we have and the large food supplies, we could feed everyone, but greed is truly an obstacle. Thanks for the insightful hub.
Dear SweetiePie,
There is so much truth in what you say, my friend. Thank you for taking the time to read this hub and contribute your views on this matter. May others also reach this same conclusion as ours.
*smiles*
Here in Singapore we take so many things for granted.food,water,is wasted by the tonns. Many are still obvlious to the fact others around the world are starving are in dire need of basic amneties. The government should not only educate kids to save but they must also show them the reality of whats happening in the world. Great hub buddy thumbs up
Yes Ashwin,
We are indeed so sheltered from the harsh realities of poverty. The fact that it is impossible to go hungry or homeless in Singapore has made many of us blind to the plight of others inpoorer countries.
Yes, our government has been more involved with the plight of our neighbouring countries these past few years. But educating our young on their social responsibility to the less fortunate is beginning to pick up momentum now, my friend.
Thank you so much for taking the time to read this hub, my friend.
*smiles*
prices keep going up. even when oil prices have dropped to all time lows the price of food seems to be still up there.
I think everyone is taking a wait and see attitude, my friend. Raising prices is a hard thing to do, especially where food is concerned. But you must understand that rising food prices has a lot to do with bio fuel production.
Thank you contributing to this hub, my friend.
Ridiculous to extract fuel from food. There isn't enough food as it stands!
Hi Blake,
I totally agree with you, my friend. I hope that you and those that you know could help to raise awareness on the problems that have caused food prices to escalate the way that they have.
Thank you for sharing your views on this matter, my friend.
*smiles*
Thanks for writing this useful and informative article. It is really sad that most us are not aware of this situation and the situation is getting grimmer day by day.
Thanks for writing this useful and informative article. It is really sad that most us are not aware of this situation and the situation is getting grimmer day by day.
wordpulse says:
2 years ago
Indeed, it makes me wonder if "renewable" energy is really a boon to mankind.